harshita tomar

7/30/2019 Harshita Tomar

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What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give some

Disadvantage of MIS?

Organized approach to the study of information needs of a management at every level

in making operational, tactical, and strategic decisions. Its objective is to design and

implement man-machine procedures, processes, and routines that provide suitably

detailed reports in an accurate, consistent, and timely manner. Modern, computerized

systems continuously gather relevant data, both from inside and outside the

organization. This data is then processed, integrated, and stored in a centralized

database (or data warehouse) where it is constantly updated and made available to all

who have the authority to access it, in a form that suits their purpose.

Characteristics of MIS:

MIS is mainly designed to take care of the needs of the managers in the organization.

MIS aids in integrating the information generated by various departments of the

organization.

MIS helps in identifying a proper mechanism of storage of data.

MIS also helps in establishing mechanism to eliminate redundancies in data.MIS as a system can be broken down into sub systems.

The role and significance of MIS in business and its classification is explained. It is

possible to understand the various phases of development in MIS based on the type of

system required in any organization.

Functions of MIS

1. Data processing

It includes the collection, transmission, storage, processing and output of data. It

simplifies the statistics and reduces to the lowest cost by supplying an unified format.

2. Function of prediction

It predicts the future situation by applying modern mathematics, statistics orsimulation.

3. Function of plan

It arranges reasonably the plans of each functional department in accordance with therestrictions afforded by enterprises and provides the appropriate planning reports

according to different management.

4. Function of control

It monitors and inspects the operation of plans and comprises with the differences

between operation and plan in accordance with the data afforded by every functional

department, and be assistant to managers to control timely each method by analyzing

the reasons why the differences comes into being.

5. Function of assistanceIt derives instantly the best answers of related problems by applying to various of

mathematics’ mode and analyzing a plentiful data stored in computers in the hope of

using rationally human resource, financial resource, material resource and information

resource for relative abundant economic benefits.

Disadvantages of MIS

1.highly senstive requires constant monitoring.

2.buddgeting of MIS extremely difficult.



3.Quality of outputs governed by quality of inputs.

4.lack of flexiblity to update itself.

5.effectiveness decreases due to frequent changes in top management

6.takes into account only qualitative factors and ignores non-qualitative factors like

morale of worker, attitude of worker etc..

by divyapizzacom

2. Explain Knowledge based system? Explain DSS and OLAP with example?



MB0047-

Management

Information

System

Q1. What is MIS?

Define thecharacteristics of

MIS? What are



the basic

Functionsof MIS?

Give some

Disadvantage of MIS?Answer:-

MIS systems areextensively used

in generating



statistical report

of any

organizationwhic

h can be used to

study

management bybehavior. They

set objectives to



their employees

using ratio

analysis.

Management also

uses MIS for

decision makingfrom thelow

level



management to

top level

management. In

order to perform

task

usingInformationsystems use of

technical support



is required. So it

is the

combination of

3components i.e.

organization,

technology andmanagement.



MIS

characteristics•

It supportstransaction

handling andrecord keeping.•

It is also called asintegrated



database

Management

System which

supports inmajor

functional areas.•

It provides

operational,tactical, and



strategic level

managers with

east access

totimely but, for

the most,

structuredinformation.•



It supports

decision – making

function which is

a vital role of

MIS.•

It is flexible

which is neededto adapt to the



changing needs of

the organization.•

It promotessecurity system

by providing onlyaccess to

authorized users.•



MIS not only

provides

statistical and

data analysis but

also works on the

basis onMBO(management by

objectives). MIS



is successfully

used for

measuring perfo

rmance and

making

necessarychange in the

organizational



plans

and procedures. It

helps to build

relevant and

measurable

objectives,monitor results,

andsend alerts.



Basic Function of

MIS

The main

functions of MISare:•

Data Processing:

Gathering,

storage,



transmission,

processing and

getting outputof

the data. Making

the data into

information is amajor task.•



Prediction:

Prediction is

based on the

historical data by

applying the

prior knowledgemethodology by

using modern



mathematics,

statistics or

simulation.

Prior knowledge

varies on the

application andwith different

departments.•



Planning:

Planning reports

are produced

based on the

enterprise

restriction onthecompanies and

helps in planning



each functional

department to

work reasonably.•

Control: MIS

helps inmonitoring the

operations andinspects the plans.



It consistsof

differences

between operation

and plan with

respect to data

belonging todifferentfunctiona

l department. It



controls the

timely action of

the plans and

analyzes

thereasons for the

differencesbetween the

operations and



plan. Thereby

helps managersto

accomplish their

decision making

task successfully.-

1 – MB0047-

Management



Information

System•

Assistance: Itstores the related

problems andfrequently used

informationtoapply them for



relative economic

benefits. Through

this it can derive

instant answersof

the related

problem.Disadvantages of

MIS



The following are

some of the

disadvantages of

MIS:•

MIS is highlysensitive: MIS is

very helpful inmaintaining



logging

information of an

authorized user.

This needs to

monitor

constantly.•



Quality of outputs

is governed by

quality of inputs.•

MIS budgeting:

There isdifficulty in

maintainingindirect cost and



overheads.Captur

ing the actual cost

needs to have an

accrual system

having true costs

of outputswhichis extremely

difficult. It has



been difficult to

establish definite

findings.•

MIS is not

flexible to updateitself for the

changes.•



The changes in

the decision of

top level

management

decrease its

effectiveness.•

Informationaccountability is



based on the

qualitative factors

and the factors

likemorality,

confidence or

attitude will nothave any base.

-2-



2. Explain

Knowledge based

system?

Explain DSS and

OLAP withexample?Answer:

Knowledge BasedSystem (KBS)



KBS are the

systems based

on knowledge

base.

Knowledge base

is thedatabasemaintain

ed for knowledge



management

which provides

the means of data

collections,organ

ization and

retrieval of knowledge. The

knowledge



management

manages

thedomain

where it creates

and enables

organization foradoption of

insights



andexperiences.T

here are two types

of knowledge

bases.a. Machine

readable

knowledgebases: The

knowledge base



helps the

computer

to process

through. It

makes the data

in the computerreadable code

which makes



theoperator to

perform easier.

Such information

sare used by

semantic web.

Semantic web isaweb that will

make a



description of the

system that a

system can

understand. b.

Human readable

knowledgebases: They are

designed to help



people to

retrieveknowledg

e. The

information need

to be processed

by the reader.The reader can

accessthe



information and

synthesize their

own.KBS refers

to a system of

data and

information usedfor decision

making. The



system

isautomated to

work on the

knowledge based

data and

informationrequired in a

particular domain



of management

activity. The

processing is

done based on the

past decisions

takenundersuitable

conditions.



Decision making

is based on the

fact that the

condition

issimilar to the

past situationhence the

decision is also is



similar.Examples

of KBS are

intelligent

systems, robotics,

neural networks

etc.



Online Analytical

Processing

(OLAP)

OLAP refers to asystem in which

there arepredefined

multiple



instances of

variousmodules

used in business

applications. Any

input to such a

system results inverificationof the

facts with respect



to the available

instances.A

nearest match is

found

analytically and

the resultsdisplayed form

the database.



Theoutput is sent

only after

thorough

verification of

the input facts

fed to the system.Thesystem goes

through a series



of multiple

checks of the

various

parameters used

in business

decision making.OLAP is also

referred to as a



multi

dimensional

analyticalmodel.

Many big

companies use

OLAP to get goodreturns in

business.- 3 -



The querying

process of the

OLAP is very

strong. It helps

the management

take decisionslikewhich month

would be



appropriate to

launch a product

in the market,

what should bethe

production

quantity tomaximize the

returns, what



should be the

stocking policy

inorder to

minimize the

wastage etc.A

model of OLAPmay be well

represented in the



form of a 3D box.

There are six

facesof the box.

Each adjoining

faces with

common vertexmay be

considered to



represent

thevarious

parameter of the

business situation

under

consideration.E.g.: Region, Sales &



demand, Product

etc.

Model of OLAP

Decision Support

Systems (DSS)DSS is an

interactive



computer based

system designed

to help the

decision makers

to useall l the

resourcesavailable and

make use in the



decision making.

In management

many atime

problems arise

out of situations

for which simplesolution may not

be possible.



Tosolve such

problems you

may have to use

complex theories.

The models that

wouldberequired to

solve such



problems may

have to be

identified. DSS

requires a lot

of managerial

abilities andmanagers

judgment.You



may gather and

present the

following

information by

using decision

supportapplication:• Accessing all

of your current



information

assets, including

legacy and

relational

datasources,

cubes, datawarehouses, and

data marts•



Comparative sales

figures between

one week and the

next• Projected

revenue figures

based on newproduct sales

assumptions- 4 -



alternatives, given

past experience in

a contextthat is

described.Manag

er may

sometimes find itdifficult to solve

such problems.



E.g. – In a

sales problem if

there is multiple

decision

variables

modeled as asimple linear

problem



buthaving

multiple optima,

it becomes

difficult to take a

decision. Since

any of themultipleoptima

would give



optimum results.

But the strategy to

select the one

most suitable

under conditions

prevailing in themarket, requires

skills beyond the



model.It would

take some trials to

select a best

strategy. Under

such

circumstances itwould beeasy to

take decision if a



ready system of

databases of

various market

conditions

andcorresponding

appropriatedecision is

available. A



system which

consists of

database pertainin

g to decision

making based on

certain rules isknown as

decision support



system.It is a

flexible system

which can be

customized to suit

the organization

needs. It canwork in the

interactive mode



in order to enable

managers to take

quick decisions.

You canconsider

decision support

systems as thebest when it

includes high-



level

summaryreports

or charts and

allow the user to

drill down for

more detailedinformation.A

DSS has the



capability to

update its

decision database.

Whenever

manager feels that

a particulardecision is

unique and not



available in the

system, the

manager can

chose toupdate

the database with

such decisions.This will

strengthen the



DSS to take

decisions

infuture.There is

no scope for

errors in decision

making whensuch systems are

used as aid



todecision

making. DSS is a

consistent

decision making

system. It can be

used togeneratereports of

various lever



management

activities. It is

capable of

performing

mathematicalcalc

ulations andlogical

calculation



depending upon

the model

adopted to solve

the problem. You

can summarize

the benefits of DSS into

following:•



Improves

personal

efficiency•

Expedites

problem solving•

Facilitatesinterpersonal

communication•



Promotes learning

or training•

Increases

organizational

control•

Generates newevidence in

support of a



decision• Creates

a competitive

advantage over

competition•

Encourages

exploration anddiscovery on the

part of the



decision maker •

Reveals new

approaches to

thinking about the

problem space- 5

-3. What are Value

Chain Analysis &



useful in terms of

MIS?

Answer:ValueChain Analysis:

The activitiesperformed by a

particular



enterprise can

be analyzed into

primaryactivities

, which directly

adds value to the

enterprise’sfactors of

production,



which aretogether

referred to as the

‘value chain’, and

supporting

activities.

Figure: ProductDifferentiation and

Value Chain



representationPort

er’s Enterprise

Value-Chain

Value-additionactivities like

production,marketing

delivery, and



inputs,

technology,

human

resources, or

overall

infrastructurefunctions to support

the primary



activities.It is

possible to reduce

the transaction

cost by proper

coordination of

all the activities.Itshould be

possible to gather



better

information for

various controls

and also replace

thesame by less

costlier activities.It will also be

possible to reduce



the overall time

requiredto

complete an

activity.Therefore

coordination is

very important toachieve

competitive



advantage. For

this it isnecessary

to manage the

value chain as a

system rather

than as separateparts.

Anenterprise’s



value chain for

competing in a

particular

industry is

embedded in a

larger - 6 -



MB0047-

Management

Information

Systemstream of

activities. What

Porter termed as‘value system’,

may be referred



to as the‘industry

value-chain’.

This chain

consists of

mainly the

suppliers anddistributionchann

els. Any activity



changes the

direction of the

value chain.• Shifting buyer

needs

–



The buyers have

been increasing

their demands to

satisfy their needs

in the form

convenience andbetter price and

features. This



demand

influences

achange in the

related market

segments;

• Variation inindustry

segmentation



– The value

system

undergoes a

changedepending

upon the

existence of oldand new systems

and its



components in

the valuechain.

Organizations,

which fail to

adjust will have to

close down their business.•



conditions.

Enterprises

which continue

to work on the

older approaches

in outdated modesof operation

suffer.



• Changes in

government

regulations –

If there is achange in the

standards of the product of the

enterprise, with



respect to the

environmental

controls,

restrictions on

entryto the

market, and tradebarriers then it

affect the



performance of

the enterprise.

BPR

The existing

system in the

organization istotally

reexamined and



radically modified

for incorporating

the latest

technology. This

process of

change for thebetterment of

theorganization is



called as Business

process re-

engineering. This

process is mainly

used tomodernize

and make theorganizations

efficient. BPR



directly affects

the performance.

Itis used to gain

an understanding

the process of

business and tounderstand the

process tomake it



better and re-

designing and

thereby

improving the

system.BPR is

mainly used forchange in the

work process.



Latest software

is used

andaccordingly

the business

procedures are

modified, so thatdocuments are

worked



uponmore easily

and efficiently.

This is known as

workflow

management.

Signification of BPR



Business process

are a group of

activities

performed by

various

departments,variousorganizati

ons or between



individuals that is

mainly used for

transactions in

business.There

may be people

who do thistransaction or

tools. We all do



them at one point

or another either

as a supplier or

customer. You

will really

appreciate theneed of

processimprove



ment or change

in the

organizations

conduct with

business if you

have ever waitedin the queue for a

longer time to



purchase 1 kilo of

rice from a Public

DistributionShop

(PDS-ration

shop). The

process is calledthe check-out

process. It is



called

process because

uniform standard

system has been

maintained to

undertake such atask. Thesystem

starts with



forming a queue,

receiving the

needed item form

the shop, getting

it- 7 -

harshita tomar

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